Why starting with the most expensive option is important

Karen Liubinskas

Aug 1, 2021

2

min read

Eytan Lenko has shared with us this thread of really interesting content from Stephane Hallegette

The full report is available here:

When starting with the most expensive option makes sense: Optimal timing, cost and sectoral allocation of abatement investment

Since many countries are exploring their options to decarbonize their economy, it may be a good time for a summary of the paper published in the @JEEM_tweets with @vogtschilb and @GuyMeunierEco on how to prioritize climate action. (1/N) https://t.co/xaKR84Xvwv
— stephane hallegatte (@hallegatte) July 27, 2021

This is what MAC curves are all about, and what climate economics has focused upon in the past. But it is not what the climate change challenge is about. We do not need marginal changes to reduce emissions a little. We need structural changes to reduce emissions to zero. #NetZero pic.twitter.com/r5YkOMidds
— stephane hallegatte (@hallegatte) July 27, 2021

Click here to read the full thread

Highlights from full report;

The same carbon price translates into different abatement investment costs in different sectors.
Sectors with higher emissions and more expensive abatement capital should invest more dollars per abated ton.
Abatement cost curves cannot be used to model abatement options that require investment in low-carbon capital.

Full report:

When starting with the most expensive option makes sense: Optimal timing, cost and sectoral allocation of abatement investment

Photo by Josh Hild on Unsplash

Posted

Aug 1, 2021

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